1. Explicit and Implicit Costs
Juan and Julia contributed $50,000 of their own money to the
company
They bought equipment for $3,000
They hired an employee with a salary of $20,000
Juan quit his job where he earned $30,000
Julia quit part of her job where she earned $15,000
· Purchases of materials for the business were $10,000
· At the end of the year the value of the equipment is
$28,000
· A business loan of $100,000 pays 6% annual interest
The normal profit based on the above data from running the
business is $30,000.
True or false? ____________.
2. When decisions are passed down an administrative hierarchy,
there is a system of ________________.
a. Orders
b. Incentive
c. Free market
d. of consumerism
3. Which of the following statements is false?
a. The firm's long-run cost is the cost of using the economically
efficient quantity of output
b. In the long run, the average cost curve is downward
sloping
c. In the long run, they are all variable costs
d. In the long run, the quantities of all the factors of production
can vary
4. Working capital product
- A Answer The Following 1 Explicit And Implicit Costs Juan And Julia Contributed 50 000 Of Their Own Money To The Com 1 (14.43 KiB) Viewed 47 times
- A Answer The Following 1 Explicit And Implicit Costs Juan And Julia Contributed 50 000 Of Their Own Money To The Com 2 (14.43 KiB) Viewed 47 times
Job Capital 1 1 Product 20 45 60 2 3 4 65